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    CELH
    Earnings call· Dec 2025(Q4 FY25)

    Celsius Holdings Q4 FY25 earnings call CELH

    Feb 26, 2026 Source

    Executive summary

    Celsius Holdings Q4 FY25 — Record Revenue and Portfolio Integration Progress

    Celsius Holdings delivered record full-year revenue, driven by strong performance from Alani Nu and the continued execution of its portfolio strategy. The company is actively integrating Alani Nu and Rockstar Energy into the PepsiCo system, which has created some short-term timing impacts on reported sales and margins. Management remains focused on operational discipline, international expansion, and innovation to drive sustainable, profitable growth, with significant shelf space gains anticipated for both CELSIUS and Alani Nu in 2026.

    Highlights

    5

    • Achieved full year record revenue of $2.5 billion.

    • Alani Nu recorded record net sales of $370 million in Q4, with pro forma growth of 136% year-over-year.

    • The combined portfolio represents approximately 1/5 of the U.S. energy market in tracked channels for the full year.

    • CELSIUS brand secured roughly 17% additional shelf space for 2026.

    • Alani Nu secured over 100% (triple-digit) additional shelf space for 2026.

    Concerns

    3

    • Q4 GAAP sales for brand CELSIUS showed a 7.7% decline due to timing activities related to the Alani load-in.

    • Gross profit margin in Q4 was 47.4%, down from 50.2% in the prior year, reflecting dilution from Rockstar Energy, higher integration costs, and tariffs.

    • Rockstar Energy integration is still ongoing, with completion expected in the first half of 2026.

    Guidance & targets

    5
    CategoryTargetConfidence
    Alani Nu integration completion
    by the end of the first quarter of 2026
    medium materiality
    High
    Rockstar Energy integration completion
    in the first half of 2026
    medium materiality
    High
    Rockstar Energy business stabilization and growth
    stabilize the business and move it back into growth over the next handful of years
    medium materiality
    Medium
    Gross margin
    low 50s
    high materiality
    Medium
    Gross margin
    mid-50s
    high materiality
    Low

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    CELSIUS
    Underlying GAAP sales showed a decline due to timing activities related to the Alani load-in and inventory movements within the Pepsi system, despite healthy scanner data.
    Scanner data growth: 12.8% (Q4 FY25)Additional shelf space: 17% (2026)
    		—-7.7%——
    CELSIUS
    Full year net sales for brand CELSIUS.
    		$1.46B7.5%——
    Alani Nu
    Achieved record net sales in Q4, benefiting from significant customer demand, increased distribution points, and increased orders during the transition into the PepsiCo system.
    Contribution to net sales (9 months): $1BAdditional shelf space: triple-digit (2026)
    		$370M136% (pro forma)——
    Rockstar Energy
    Sales recorded within net sales, with an additional amount recorded in other income due to accounting treatment during integration. U.S. portion expected to fully transition to finished goods model in Q1 FY26, Canadian portion in H1 FY26.
    Other income: $6M (Q4 FY25)
    		$45M———
    Rockstar Energy
    Full year net sales and other income.
    Other income: $13M (FY25)
    		$56M———

    Operational metrics

    28
    Consolidated Revenue
    $2.5B
    FY25

    Full year record revenue.

    US Energy Market Share
    approximately 1/5
    FY25

    Combined portfolio of CELSIUS, Alani Nu, and Rockstar Energy.

    Gross profit
    $341.8Mincreased by $175.1M
    Q4 FY25

    Compared to prior year period.

    Gross profit
    $1.27Bincreased from $680M in 2024
    FY25

    Full year gross profit.

    Gross profit margin
    47.4%compared to 50.2% in the prior year period
    Q4 FY25

    Impacted by one-time integration and distribution transition costs.

    Gross profit margin
    50.4%increased by 20 bps from prior year
    FY25

    Full year gross profit margin.

    Sales and marketing expense
    $249.2M
    Q4 FY25

    Reported GAAP.

    Sales and marketing expense (adjusted)
    23.3%
    Q4 FY25

    Non-GAAP measure.

    Administrative expense
    $66.6M
    Q4 FY25

    Reported GAAP.

    Administrative expense (adjusted)
    8.5%
    Q4 FY25

    Non-GAAP measure.

    Net income (GAAP)
    $24.7M
    Q4 FY25

    GAAP basis.

    Adjusted EBITDA
    $134.1Mup from $62.9M in the prior year period
    Q4 FY25

    Non-GAAP measure.

    Adjusted SG&A
    31.8%
    Q4 FY25

    Non-GAAP measure.

    Sales and marketing expense
    $876.3M
    FY25

    Full year reported GAAP.

    Sales and marketing expense (adjusted)
    21.8%
    FY25

    Full year non-GAAP measure.

    Administrative expense
    $250M
    FY25

    Full year reported GAAP.

    Administrative expense (adjusted)
    7.5%
    FY25

    Full year non-GAAP measure.

    Adjusted SG&A
    29.4%
    FY25

    Full year non-GAAP measure.

    Adjusted EBITDA margin
    18.6%
    Q4 FY25

    Non-GAAP measure.

    Net income (GAAP)
    $108M
    FY25

    Full year GAAP basis.

    Adjusted EBITDA
    $619.6M
    FY25

    Full year non-GAAP measure.

    Adjusted EBITDA margin
    24.6%
    FY25

    Full year non-GAAP measure.

    Cash balance
    $399M
    as of Dec 31, 2025

    Ended the year with this amount.

    Total debt
    $670M
    as of Dec 31, 2025

    Ended the year with this amount.

    Debt reduction
    $200M
    Q4 FY25

    Reduced debt during the quarter.

    Share repurchases
    $40M
    Q4 FY25

    Repurchased shares during the quarter.

    Remaining share repurchase authorization
    $260M
    as of Dec 31, 2025

    Remaining under the share repurchase program.

    Net benefit from inventory movements
    $25M
    Q4 FY25

    Net benefit to reported results from combining CELSIUS inventory movements with Alani load-in.

    Industry KPIs

    9
    MetricValueDetails
    Category brand shareapproximately 1/5
    EPS organic EPS growth$24.7MUSD
    Gross operating margin47.4%%
    Organic revenue growth7.5%%
    Unit case volume growth12.8%%
    Aluminum packaging cost impact—
    Freight logistics cost pressure—
    Pack architecture pricing actions—
    Cold drink equipment distribution reach17%%

    Product announcements

    3
    ProductTypeDetails
    Fizz-Free linelaunch
    Cherry Bomblaunch
    Lime Slushlaunch

    Risks & headwinds

    4
    Rockstar Energy integration impact on gross marginQ4 FY25, expected to moderate as integration completes in H1 2026

    Dilution from Rockstar Energy was a factor in Q4 FY25 gross margin decline from 50.2% to 47.4%.

    Mitigation: Integration completion, consistent execution, more focused SKU set, and improving margin structure over time.

    Higher cost of product related to integration and tariffsQ4 FY25, expected to moderate as integration completes in H1 2026

    Contributed to Q4 FY25 gross margin decline from 50.2% to 47.4%.

    Mitigation: Operational efficiencies, revenue growth management, and integration of Alani and Rockstar into the orbit model to gain leverage and scale.

    Midwest premium and tariffs2026

    Factored into gross margin expectations for 2026.

    Mitigation: Ongoing initiatives to improve margins, with potential for quicker improvement if tariffs subside.

    Quarter-to-quarter variability in reported resultsQ1-Q2 FY26

    Reported results can vary when shipments, inventory positioning, and promotions are not perfectly aligned with consumer takeaway.

    Mitigation: Impacts expected to moderate as integration milestones are completed in H1 2026; tightening alignment between shipments and underlying takeaway; managing the business holistically.

    What to watch in Q1 FY26

    5

    Alani Nu integration completion

    end of Q1 FY26
    CurrentSubstantially complete on U.S. DSD transition as of year-end 2025
    TargetCompleted

    Why it matters

    Successful integration is key to realizing synergies and optimizing distribution within the PepsiCo system, impacting future growth and profitability.

    We continue to expect the Alani implementation and integration to be completed by the end of the first quarter of 2026.

    Q&A highlights

    5

    When will the benefits from spring shelf space resets materialize, especially for Alani Nu? Will Q1 reported sales for CELSIUS improve given the Q4 gap between consumption and reported sales?

    Shelf space gains are expected to materialize through the end of spring, with the biggest gains for Alani Nu in convenience. While there can be timing differences between consumption and reported revenue, the company is committed to tightening these gaps. CELSIUS orders in early 2026 are aligning more closely with tracked data, but quarter-to-quarter variability can still occur due to LTOs and distribution expansion.

    “Historically, we've seen them really materialize through and kind of finalize right around the end of spring, has historically been when the final resets take place as everyone is gearing up, as we call, the beverage summer selling season.”

    asked by Filippo Falorni · answered by John Fieldly

    2 min read6 chapters

    Detailed Narrative

    01

    Portfolio Strategy and Market Position

    Celsius Holdings is building a modern energy portfolio with CELSIUS, Alani Nu, and Rockstar Energy, which collectively represent approximately one-fifth of the U.S. energy market in tracked channels. The company manages each brand to broaden its reach, with two brands now exceeding $1 billion in sales. The strategy focuses on precision execution, innovation, and activating demand to strengthen the core business and ensure sustainable, profitable growth.

    02

    Integration Progress for Alani Nu and Rockstar Energy

    The integration of Alani Nu into the PepsiCo system is substantially complete for U.S. DSD as of year-end 2025, with full implementation expected by the end of Q1 2026. Rockstar Energy's integration is also on track for completion in the first half of 2026. These integrations are building repeatable processes and refining a playbook for managing complexity across the growing portfolio, with a focus on consistent execution, SKU optimization, and improving margin structure.

    03

    International Expansion Initiatives

    International markets represent a significant long-term growth opportunity, with Celsius currently present in approximately 10 markets. The company's approach is intentional, prioritizing focused market selection, clear entry plans, and strong local partnerships. Garrett Quigley has been appointed President of International to build a dedicated sales and marketing organization, leveraging global consumer trends towards zero sugar, functional energy.

    04

    Marketing and Innovation Capabilities

    Celsius is enhancing its marketing capabilities with the creation of a new in-house brand studio. This full-service agency aims to drive brand growth with speed and consistency across all consumer touchpoints, from packaging to digital content. Innovation remains central, with the national availability of the Fizz-Free line and a disciplined approach to Limited Time Offers (LTOs) like Cherry Bomb and Lime Slush, designed to expand the funnel, drive trial, and reinforce the core portfolio.

    05

    Revenue Growth Management and Operational Discipline

    The company is adopting a portfolio approach to revenue growth management (RGM), focusing on precision and ROI discipline rather than broad-based price increases. This involves shaping the business through mix, price pack architecture by channel, pack strategy, and disciplined promotion. The goal is to improve both growth and quality of earnings, leading to tighter, more intentional, and measurable promotional activity, supported by aligned planning with PepsiCo.

    06

    Shelf Space Gains and Velocity Outlook

    Celsius expects significant shelf space gains in 2026, with CELSIUS securing 17% additional space and Alani Nu achieving triple-digit space gains, particularly in convenience channels. These gains are driven by retailers expanding energy category space, often optimizing beer or juice cooler sections. While initial velocity in new distribution points for Alani Nu may be lower, the company aims to build velocity over time⏳ through marketing, innovation, and consistent consumer purchasing.

    AI-generated summary of the company’s earnings call. Not investment advice.